# 3560.259 Transferring rental assistance.
(a) *Agency authority.* The Agency may transfer rental assistance in the following instances:
(1) To accompany the transfer of a housing project to a different borrower;
(2) After a voluntary conveyance or a foreclosure sale;
(3) After a liquidation, prepayment, or natural maturity;
(4) To the extent permitted by law, when any rental assistance units have not been used for a 6-month period (Section 515) or a 12-month period (Section 514 or 516); or
(5) When the loan cannot be closed.
(b) *Agency review before transferring rental assistance.* The Agency must perform a review to determine if all eligible tenants in the project are receiving rental assistance before the Agency transfers it to another project.
(c) *Transferring rental assistance for displaced tenants.* The Agency may transfer rental assistance from one housing project to another eligible housing project for a tenant who is moving due to displacement as a result of prepayment, liquidation, or a natural disaster. The tenant must begin using the rental assistance within 4 months of the transfer or the RA will become available for use by the next rental assistance eligible tenant in the housing project.
(d) *Agency use of obligation balances.* In lieu of transferring rental assistance units, the Agency may elect to utilize the remaining obligation balances of units identified in paragraphs (a)(2) and (3) of this section for renewal purposes.
[69 FR 69106, Nov. 26, 2004, as amended at 87 FR 11283, Mar. 1, 2022]